HAR §15-306-3. Fees

The corporation shall charge the following fees: (1) Application for exemption of an eligible housing project and claimant: $500, to be adjusted annually each July 1 using the consumer price index series title: all items in U.S. city average, all urban consumers, not seasonally adjusted, for the month of April published by the U.S. Department of Labor, Bureau of Labor Statistics. The corporation shall post any fee changes on its website; 306-9
  §15-306-3 (2) Subsequent applications for certification of claimants of an eligible housing project: $300, to be adjusted annually each July 1 using the consumer price index series title: all items in U.S. city average, all urban consumers, not seasonally adjusted, for the month of April published by the U.S. Department of Labor, Bureau of Labor Statistics. The corporation shall post any fee changes on its website; (3) Application for annual certification of rental income generated by an eligible housing project: $300, to be adjusted annually each July 1 using the consumer price index series title: all items in U.S. city average, all urban consumers, not seasonally adjusted, for the month of April published by the U.S. Department of Labor, Bureau of Labor Statistics. The corporation shall post any fee changes on its website; and (4) A reasonable annual compliance monitoring fee may be charged to cover administrative expenses. It will be the responsibility of the corporation or its designated representative to inform the project owner of any changes in the annual compliance fee. The fee may be adjusted annually each July 1. [Eff 10/08/07; am 09/05/08; am and comp 12/11/10; am and comp 12/11 15; am and comp 10/27/18; comp ] (Auth: HRS §237-29) (Imp: HRS §§237-29, 201H-36) 306-10 §15-306-3 (2) Subsequent applications for certification of claimants of an eligible housing project: $300, to be adjusted annually each July 1 using the consumer price index series title: all items in U.S. city average, all urban consumers, not seasonally adjusted, for the month of April published by the U.S. Department of Labor, Bureau of Labor Statistics. The corporation shall post any fee changes on its website; (3) Application for annual certification of rental income generated by an eligible housing project: $300, to be adjusted annually each July 1 using the consumer price index series title: all items in U.S. city average, all urban consumers, not seasonally adjusted, for the month of April published by the U.S. Department of Labor, Bureau of Labor Statistics. The corporation shall post any fee changes on its website; and (4) A reasonable annual compliance monitoring fee may be charged to cover administrative expenses. It will be the responsibility of the corporation or its designated representative to inform the project owner of any changes in the annual compliance fee. The fee may be adjusted annually each July 1. [Eff 10/08/07; am 09/05/08; am and comp 12/11/10; am and comp 12/11/15; am and comp 10/27/18; comp FEB i 8 202? ] (Auth: HRS §237-29) (Imp: HRS §§237-29, 201H-36) 306-10
 SUBCHAPTER 2 CERTIFICATION OF PERSONS AND FIRMS §15-306-11 §15-306-11 Types of income eligible for exemption. (a) With respect to for-sale housing projects, the gross income received by a qualified person or firm as allowable development costs, allowable construction costs, or allowable financing costs for the planning, design, financing, construction, or sale of an eligible housing project may be exempt from general excise taxes. (b) With respect to rental housing projects, the gross income received by a qualified person or firm as allowable development costs, allowable construction costs, or allowable financing costs for the planning, design, financing, construction, moderate rehabilitation, or substantial rehabilitation of an eligible housing project may be exempt from general excise taxes. (c) Rents received from residential units in a rental housing project may be exempt from general excise taxes; provided that in an economically integrated housing project in which only a portion of the units in a project are targeted for lower income households, the exemption shall apply to only that portion targeted for lower income households. (d) Revenues received from commercial, industrial, or other nonresidential uses within an eligible housing project, such as coin operated vending machines, laundromats, parking fees, and the like, shall not be eligible for an exemption from general excise taxes. 306-11 SUBCHAPTER 2 CERTIFICATION OF PERSONS AND FIRMS §15-306-11 §15-306-11 Types of income eligible for exemption. (a) With respect to for-sale housing projects, the gross income received by a qualified person or firm as allowable development costs, allowable construction costs, or allowable financing costs for the planning, design, financing, construction, or sale of an eligible housing project may be exempt from general excise taxes. (b) With respect to rental housing projects, the gross income received by a qualified person or firm as allowable development costs, allowable construction costs, or allowable financing costs for the planning, design, financing, construction, moderate rehabilitation, or substantial rehabilitation of an eligible housing project may be exempt from general excise taxes. (c) Rents received from residential units in a rental housing project may be exempt from general excise taxes; provided that in an economically integrated housing project in which only a portion of the units in a project are targeted for lower income households, the exemption shall apply to only that portion targeted for lower income households. (d) Revenues received from commercial, industrial, or other nonresidential uses within an eligible housing project, such as coin operated vending machines, laundromats, parking fees, and the like, shall not be eligible for an exemption from general excise taxes. 306-11
  §15-306-11 (e) Except for moderate rehabilitation and substantial rehabilitation, revenues received for contracting, services, and materials provided in connection with the management, operation, maintenance, and repair of a rental housing project shall not be eligible for an exemption from general excise taxes. [Eff 10/08/07; am 09/05/08; am and comp 12/11/10; comp 12/11/15; am and comp 10/27/18; comp 1 8 ] (Auth: HRS §237-29) (Imp: HRS §237-29) §15-306-12 Application for certification of newly constructed or rehabilitated housing projects. When an exemption from general excise taxes is requested by a claimant involved with a newly constructed or rehabilitated housing project, the following shall apply. (1) The developer or general contractor of an eligible housing project shall submit to the corporation completed general excise tax exemption claims (department of taxation form G-37) on behalf of any subcontractors, material houses, real estate sales agencies, or other firms involved with the planning, design, financing, construction, or sale of the housing project; (2) Along with the claim forms, the developer or general contractor shall submit to the corporation the following information on the eligible housing project: (A) A description of the eligible housing project, including the number of housing units affordable to households earning up to fifty per cent, sixty per cent, eighty per cent, ninety-five per cent, and one hundred forty per cent, respectively, of the area median income, as determined by HUD; 306-12 §15-306-11 (e) Except for moderate rehabilitation and substantial rehabilitation, revenues received for contracting, services, and materials provided in connection with the management, operation, maintenance, and repair of a rental housing project shall not be eligible for an exemption from general excise taxes . [ Eff 1 0 / 0 8 / 0 7 ; am 0 9 / 0 5 / 0 8 ; am and comp 12/11/10; comp 12/11/15; am and comp 10/27/18; comp FER 1 8 202? I (Auth: HRS $237-29) (Imp: HRS §237-29) §15-306-12 Application for certification of newly constructed or rehabilitated housing projects. When an exemption from general excise taxes is requested by a claimant involved with a newly constructed or rehabilitated housing project, the following shall apply. (1) The developer or general contractor of an eligible housing project shall submit to the corporation completed general excise tax exemption claims (department of taxation form G-37) on behalf of any subcontractors, material houses, real estate sales agencies, or other firms involved with the planning, design, financing, construction, or sale of the housing project; (2) Along with the claim forms, the developer or general contractor shall submit to the corporation the following information on the eligible housing project: (A) A description of the eligible housing project, including the number of housing units affordable to households earning up to fifty per cent, sixty per cent, eighty per cent, ninety-five per cent, and one hundred forty per cent, respectively, of the area median income, as determined by HUD; 306-12 i4  §15-306-12 (B) Authorization for the corporation to conduct on-site inspections of the affordable housing project if the project is not being developed or rehabilitated under the sponsorship of the corporation; (C) A written statement indicating how any cost savings realized from the exemption from general excise taxes will be used; (D) A cover letter requesting the tax exemption, which includes the following: (i) A list of qualified persons or firms previously granted or currently claiming an exemption; and (ii) Contract amounts for each of the qualified persons or firms; and (E) Any additional information necessary for the corporation to make a determination; and (3) Upon receipt, staff of the corporation shall time stamp the claim form. (A) If the person or firm is found to be eligible under these rules, staff shall within ten working days of receipt, so notify the claimant in writing. (B) If a person or entity is found to be ineligible under these rules, staff shall, within ten working days of receipt, so notify the claimant and the developer or general contractor, along with the reason or reasons that the claim is ineligible for an exemption. (4) All projects not yet placed in service shall submit to the corporation annual reports containing the following information: (A) Project status, including, but not limited to, status of construction of affordable units; 306-13 §15-306-12 (B) Authorization for the corporation to conduct on-site inspections of the affordable housing project if the project is not being developed or rehabilitated under the sponsorship of the corporation; (C) A written statement indicating how any cost savings realized from the exemption from general excise taxes will be used; (D) A cover letter requesting the tax exemption, which includes the following: (i) A list of qualified persons or firms previously granted or currently claiming an exemption; and (ii) Contract amounts for each of the qualified persons or firms; and (E) Any additional information necessary for the corporation to make a determination; and (3) Upon receipt, staff of the corporation shall time stamp the claim form. (A) If the person or firm is found to be eligible under these rules, staff shall within ten working days of receipt, so notify the claimant in writing. (B) If a person or entity is found to be ineligible under these rules, staff shall, within ten working days of receipt, so notify the claimant and the developer or general contractor, along with the reason or reasons that the claim is ineligible for an exemption. ( 4 ) All projects not yet placed in service shall submit to the corporation annual reports containing the following information: (A) Project status, including, but not limited to, status of construction of affordable units; 306-13 3454 §15-306-12 (B) Total amount of allowable construction costs, allowable development costs, and allowance financing costs accrued to date; and (C) A written statement indicating how any cost savings realized from the exemption from general excise taxes were used; (5) If the claimant is found to be an eligible rental project under these rules, the claimant shall enter into a regulatory agreement with the corporation to ensure the project's continued compliance with the applicable eligibility requirements set forth in section 201H-36, HRS, as follows: (A) For moderate rehabilitation projects, a minimum term of five years following the completion of construction; (B) For substantial rehabilitation projects, a minimum term of ten years following the completion of construction; or (C) For new construction projects, a minimum term of thirty years from the date of issuance of the certificate of occupancy. (6) A project shall be exempt from the requirement set forth in subsection (5) if: (A) The project is a participant in a government assistance program that requires the execution of a deed restriction or other written agreement that restricts the use and operation of the project, and is recorded on the project for a term that meets or exceeds the lengths of the minimum terms set forth in subsection (5); or (B) The project is a for-sale project. 306-14 §15-306-12 (B) Total amount of allowable construction costs, allowable development costs, and allowance financing costs accrued to date; and (C) A written statement indicating how any cost savings realized from the exemption from general excise taxes were used; ( 5 ) If the claimant is found to be an eligible rental project under these rules, the claimant shall enter into a regulatory agreement with the corporation to ensure the project's continued compliance with the applicable eligibility requirements set forth in section 201H-36, HRS, as follows: (A) For moderate rehabilitation projects, a minimum term of five years following the completion of construction; (B) For substantial rehabilitation projects, a minimum term of ten years following the completion of construction; or (C) For new construction projects, a minimum term of thirty years from the date of issuance of the certificate of occupancy. ( 6 ) A project shall be exempt from the requirement set forth in subsection ( 5 ) if: (A) The project is a participant in a government assistance program that requires the execution of a deed restriction or other written agreement that restricts the use and operation of the project, and is recorded on the project for a term that meets or exceeds the lengths of the minimum terms set forth in subsection ( 5 ) ; or (B) The project is a for-sale project. 306-14 0454 §15-306-13 (7) Within ten working days after recordation of the regulatory agreement in the bureau of conveyances, staff shall issue a certification for exemption (department of taxation form G-37) and shall forward the original of the certified claim form to the department of taxation. In no event shall the corporation accept a claim for certification more than one year following the close of the claimant's taxable year for which the exemption is claimed. [Eff 10/08/07; am 09/05/08; am and comp 12/11/10; am and comp 12/11/15; am and comp 10/27 /18; comp FEB 1 8 ,nn ] (Auth: HRS §237- 2 9 ) ( Imp : HRS § 2 3 7 - 2 9 ) §15-306-13 Application for certification of rental housing projects. The following requirements shall apply to requests for exemptions from general excise taxes for affordable rents received from affordable housing units in newly constructed or moderately or substantially rehabilitated rental housing projects: (1) The claimant shall annually complete and submit to the corporation a general excise tax exemption claim (department of taxation form G-37); (2) Along with the claim form, the claimant shall submit to the corporation the following information on the eligible housing project: (A) A description of the eligible housing project, including the number of housing units affordable to households earning up to fifty per cent, sixty per cent, eighty per cent, ninety-five per cent, and one hundred forty per cent, respectively, of the area median income, as determined by HUD; (B) A schedule showing rents charged on all housing units providing verification that the lower income household tenants meet the income criteria necessary for 306-15 §15-306-13 (7) Within ten working days after recordation of the regulatory agreement in the bureau of conveyances, staff shall issue a certification for exemption (department of taxation form G-37) and shall forward the original of the certified claim form to the department of taxation. In no event shall the corporation accept a claim for certification more than one year following the close of the claimant's taxable year for which the exemption is claimed. [Eff 10/08/07; am 09/05/08; am and comp 12/11/10; am and comp 12/11/15; am and comp 10/27/18; comp FER 1 8 2M27 ] (Auth: HRS $237- 29) (Imp: HRS §237-29) §15-306-13 Application for certification of rental housing projects. The following requirements shall apply to requests for exemptions from general excise taxes for affordable rents received from affordable housing units in newly constructed or moderately or substantially rehabilitated rental housing projects: (1) The claimant shall annually complete and submit to the corporation a general excise tax exemption claim (department of taxation form G-37); (2) Along with the claim form, the claimant shall submit to the corporation the following information on the eligible housing project: (A) A description of the eligible housing project, including the number of housing units affordable to households earning up to fifty per cent, sixty per cent, eighty per cent, ninety-five per cent, and one hundred forty per cent, respectively, of the area median income, as determined by HUD; ( B ) A schedule showing rents charged on all housing units providing verification that the lower income household tenants meet the income criteria necessary for 306-15 15454 §15-306-13 the tax exemption and an audited income statement or a reconciliation of the department of taxation form G-49 for the claimant's project if provided for in the regulatory agreement; (C) Authorization for the corporation to conduct on-site inspections of the project; (D) A written statement indicating how any cost savings realized from the exemption from general excise taxes will be used; and (E) Any additional information necessary for the corporation to make a determination; (3) Upon receipt, staff of the corporation shall time stamp the claim form; and: (A) If the claimant is found to be eligible under these rules, staff shall issue a certification for exemption within ten working days thereafter, and shall forward the original of the certified claim form to the department of taxation; or (B) If a person or entity is found to be ineligible under these rules, staff shall, within ten working days of receipt, so notify the claimant, along with the reason or reasons that the claim is ineligible for an exemption. In no event shall the corporation accept a claim for certification more than three years following the close of the claimant's taxable year for which the exemption is claimed. [Eff 10/08/07; am 09/05/08; am and comp 12/11/10; comp 12/11/15; am and comp 10/27/18; comp 1 ] (Auth: HRS § 2 3 7 - 2 9 ) ( Imp : HRS § 2 3 7 - 2 9 ) 306-16 §15-306-13 the tax exemption and an audited income statement or a reconciliation of the department of taxation form G-49 for the claimant's project if provided for in the regulatory agreement; (C) Authorization for the corporation to conduct on-site inspections of the project; (D ) A written statement indicating how any cost savings realized from the exemption from general excise taxes will be used; and (E) Any additional information necessary for the corporation to make a determination; ( 3) Upon receipt, staff of the corporation shall time stamp the claim form; and: (A) If the claimant is found to be eligible under these rules, staff shall issue a certification for exemption within ten working days thereafter, and shall forward the original of the certified claim form to the department of taxation; or ( B) If a person or entity is found to be ineligible under these rules, staff shall, within ten working days of receipt, so notify the claimant, along with the reason or reasons that the claim is ineligible for an exemption. In no event shall the corporation accept a claim for certification more than three years following the close of the claimant's taxable year for which the exemption is claimed. [Eff 10/08/07; am 09/05/08; am and comp 12/11/10; comp 12/11/15; am and comp 10/27/18; comp FEB 1 8 2022 1 (Auth : HRS §237-29) (Imp : HRS §237-29) 306-16 3454 ■ §15-306-15 §15-306-14 Criteria for determining eligibility of projects. In approving or disapproving a project for exemption from general excise taxes, the corporation shall determine whether: (1) The project is an eligible housing project under these rules; (2) The exemption from general excise taxes will achieve cost savings to assure economic feasibility which will encourage and enable the production or preservation of as many lower cost housing units as possible; and (3) The project is consistent with any other requirements under the law or under this chapter. The corporation may disapprove a project for exemption from general excise taxes if these criteria are not met. [Eff 10/08/07; am 09/05/08; am and comp 12/11/10; comp 12/11/15; comp 10/27/18; comp FEB 1 8 2027 ] (Auth: HRS §§201H-36, 237-29) (Imp: HRS §§201H-36, 237-29)